Company A is an equipment manufacturer, and on January 1, X1, it signed a contract with Customer B for $200,000 The cost of selling a piece of equipment is $160,000. The contract included giving Company A the right to spend $220,000 Purchase the right to buy back the equipment before December 31, X1. Company A estimated on January 1, X1

The equipment has no residual value and has a service life of 8 years. Company As depreciation methods all use the straight-line method to draw up depreciation. Because the period is only one year, for any cash received in advance on January 1, X1, the relevant design is not considered. Calculate interest. How many of the following statements are correct? (1) Regardless of whether Company A bought back before December 31, X1, the interest expense of $20,000 must be recognized (2) If Company A does not buy it back before December 31, X1, it shall recognize sales revenue of $200,000 (3) If it is changed to Company A, it has the right to buy back the equipment for $180,000 before December 31, X1. Whether it is bought back before December 31, X1, the depreciation expense of $20,000 must be recognized (4) If it is changed to Company A, it has the right to buy back the equipment for $180,000 before December 31, X1, and If Company A does not buy it back before December 31, X1, it shall recognize sales revenue of $200,000 (5) If it is changed to Company A, it has the right to buy back the equipment for $180,000 before December 31, X1, and If Company A did not buy it back before December 31, X1, it should recognize the cost of goods sold $160,000 (A) One item (B) Two items (C) Three items (D) Four items